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ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has increased Karachi Electric Supply Company (KESC) tariff by Rs 2.30 per unit across-the-board on the basis of three tariff adjustments. According to quarterly tariff determination, tariff for January to March has been raised by Rs 1.94 per unit, whereas Rs 1.54 per unit increase in tariff has been made for March under the fuel adjustment formula, which works out to be Rs 3.48 per unit.
However, tariff for April 2010 to February 2011 has been slashed by 49 paisa per unit and 69 paisa per unit for April, and it works out to be Rs 1.18 per unit. The increase in tariff will be effective from July 1, 2011. The Fuel Cost Adjustment (FCA) allowed by the authority for March 2011 ie, plus Rs 1.54 per unit is also adjustable by KESC in the bills.
In order to allow KESC for variation in fuel cost of its own generation as well as power purchased from external sources for April 2011, the authority has decided to pass on minus 67.943 paisa per unit to the consumers of KESC as FCA. The paisa per unit rounded off after taking into account its effect on the consumption of lifeline and agriculture consumers to be charged by KESC from each consumer worked out to be minus 69 paisa per unit.
The authority said "it considers appropriate that for reducing the burden of FCA on consumers, FCA allowed for April ie minus 69 paisa per unit should be charged in monthly bills of July 2011." According to the schedule for recovery of FCA for the period 2010 to February 2011 presented by the authority to Sindh High Court (SHC) on its directions, net figure of minus 49 paisa per unit on account of FCA is adjustable by KESC in the consumer bills of July 2011.
The Fuel Cost Adjustment (FCA) allowed by the authority for March 2011, ie plus Rs 1.54 per unit is also adjustable by KESC in the bills.

Copyright Business Recorder, 2011

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